Indian Overseas Bank (IOB) has announced a reduction in its lending rates following the Reserve Bank of India’s recent policy rate cut. The revised rates will come into effect from Monday, December 15.
The public sector bank has lowered its repo-linked lending rate (RLLR) by 25 basis points, bringing it down to 8.10 percent from 8.35 percent. This move reflects a full transmission of the RBI’s latest repo rate reduction to borrowers whose loans are linked to external benchmarks.
In addition to the RLLR revision, IOB has also reduced its marginal cost of funds-based lending rate (MCLR) by 5 basis points across select tenures. The reduction applies to loan tenures ranging from three months to three years and was approved by the bank’s asset-liability management committee.
The revised rates are applicable to both existing and new borrowers across multiple segments, including retail, micro, small and medium enterprises (MSMEs), and corporate loans. Loan categories such as housing, vehicle, and personal loans linked to these benchmarks will reflect the revised rates.
SBI Revises Benchmark Lending Rates
State Bank of India (SBI) has also announced revisions to its lending benchmarks in line with the policy rate cut. The country’s largest lender has reduced its External Benchmark Linked Rate (EBLR) by 25 basis points to 7.90 percent, effective December 15. This revision applies to loans linked to external benchmarks for both existing and new customers.
SBI has further lowered its Marginal Cost of Funds–Based Lending Rate (MCLR) by 5 basis points across various tenures. Following the revision, the bank’s one-year MCLR now stands at 8.70 percent. Additionally, SBI has revised its Base Rate and Benchmark Prime Lending Rate (BPLR) downward to 9.90 percent.
The rate revisions by both banks follow the RBI’s recent monetary policy action and reflect adjustments in lending benchmarks across the banking sector.
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